The House Appropriations Committee, in a vote that split closely along party lines, last week rejected an amendment forwarded by Rep. Nancy Pelosi (D-CA) that would have instituted cost-of-service rates for electricity sold at wholesale in the western region.

The amendment, which was offered to the FY 2001 Supplemental Appropriations bill, was rejected by the Appropriations Committee last Thursday by a vote of 34-27. “With this vote, the House Republicans supported the energy suppliers who withheld power, drove up prices, and gouged consumers,” Pelosi said after her amendment was defeated. House Democratic Minority Leader Richard Gephardt (D-MO) also assailed Republicans for last week’s vote. “The Republicans on the Committee refused to put temporary caps on wholesale electric prices on the West Coast, turning their backs on consumers, seniors and small businesses.”

The amendment would have required the Federal Energy Regulatory Commission to set limits on the price of electricity sold in the wholesale market in the western half of the country. In addition, the amendment called for power suppliers to receive cost-of-service rates over two years and would have exempted new generating facilities from cost-of-service rates in order to promote investment in new facilities. Pelosi’s amendment also proposed requiring FERC to order the refund of any charges that were not just and reasonable from June 1, 2000 to the date of enactment.

Meanwhile, House Democrats last week introduced a resolution urging the House Republican leadership to consider legislation designed to stabilize the wholesale power market in the West. The bill, referred to as the “Energy Price and Economic Stability Act of 2001” and sponsored by a group of western Democrats, as well as Gephardt, would direct FERC to issue an order establishing cost-of-service based rates for electric energy sold at wholesale in western energy markets. The rates would run through March 1, 2003. Democrats were expected to file a discharge petition as early as this week to get the bill on to the floor of the House for a vote.

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